In a staff meeting at the police station, Captain Ellerby and Sergeant Dignam describe how Frank Costello organized a heist of microprocessors that he apparently plans on selling to the Chinese. The cops want to create a sting operation to take Costello down once and for all.
The FBI wants to know if Dignam's unit has anyone undercover with Costello at the moment, but Dignam won't give a straight answer, because he wants to protect his informants.
Colin Sullivan heads out to investigate the murder of the dude who stole the microprocessors for Costello. But the guy's mom tells him to go away after Costello drives past her house with her daughter in his car. At this point, Colin also notices a couple of vehicles tailing Costello's car.
Back at the station, Colin runs into a beautiful woman in an elevator. He knows that she's a mental health professional in the office, and he smooth-talks his way into getting dinner with her.
After the woman (her name is Madolyn) walks away, Colin gets a call from Frank Costello, who wants to know why there are two vehicles tailing him. Colin says he knew nothing about the tails, but he gives Frank the info on them to help him out. Looks like Colin's time in the police force is already paying off for the Irish mob.
Seconds later, Frank Costello orders Mr. French to ditch the cars that are tailing him, which French does easily.